consolidated annual report - Gruppo Banca Sella

any interest on arrears accrued and not paid.
Financings bearing interest settled in advance are stated
at nominal value. Interest not matured are entered in
"Deferred income".
Securities
“Treasury bills and other bills eligible for refinancing
with central banks”, “bonds and other debt securities”
and “equity shares, quotas and other share capital
securities” are stated with reference to their settlement
date. As regards debt securities, settlement date is conventionally
represented by the date of the calculation of
interest and as regards capital securities by the contractual
settlement date.
Payables
Payables are stated at their nominal value.
Accounting policies, with regard to illiquid items
and interest relevant to customers’ and banks’ accounts
are parallel to those described above, relevant to loans.
“Due to customers” and “Due to banks” include funds
collected by way of repurchase agreements transactions
on securities.
“Debt securities” show the value of subordinated
loans issued by the Banks and funds collected through
the issue of certificates of deposit and bond loans, in addition
to the value of own cheques, banker’s drafts and
issued commercial papers.
Prepayments and accrued income
Prepayments and accrued income are calculated in
accordance with the matching principle, proportionally
with the accrued amount, taking into account settlement
rules concerning the various specific relationships
and the various specific technical forms.
Staff severance
The provision for staff severance represents the accrued
liabilities relevant to each employee, according to
the law and the contractual agreements in force, taking
into account the wages and the revaluation of the preexisting
fund.
224 - GRUPPO BANCA SELLA
Provisions for risks and charges
Provision for taxes and fees
The provision for taxes and fees represents the reserve
for direct and indirect taxation relevant to the financial
year and includes deferred taxation.
The provision for indirect taxation (stamp duty, tax
on Stock Exchange contracts and substitute tax on medium/long-term
loans) was calculated on the basis of a
precise determination of the amounts due.
The provision for income taxes on companies (IRES),
for the regional tax on industrial activities (IRAP) and
for income taxes on companies and entities operating
in foreign countries was prudently estimated with reference
to the forecasted present and deferred fiscal charge,
in accordance with the current fiscal legislation and taking
into account the applicable tax exemptions.
It is to be noted that the measure of Banca d’Italia of
3/08/1999 states that all subjects issuing a banking-financial
statement of accounts, besides “current” taxation,
must also calculate deferred taxation, both on assets
and on liabilities. The calculation of deferred taxation
follows the need of taking into account the differences
between tax rules regulating the calculation of income
and civil law rules, and therefore the differences which
may arise between fiscal values and book values in the
calculation of income. Such differences may be lasting
(i.e. producing irreversible charges and benefits) or temporary
(destined to be reabsorbed): the latter generate
“deferred” taxation. Liabilities for deferred taxation relevant
to temporary taxable differences are entered into
the provision for taxes; assets for taxes paid in advance
relevant to temporary deductible differences are stated
in item 150 “Other assets” of the Balance Sheet. The offsetting
between liabilities for deferred taxation and assets
for taxes paid in advance is done when these refer
to the same company, to the same tax and fall due in
the same period.
Deferred taxation related to assets and liabilities in
suspension of taxation was not entered in the financial
statements, as it is not likely that in the near future
these could be used so as to determine their taxation.
The deferred fiscal effect, deriving from write-downs